Tech a Says That Bands Are a Type of Hydraulic

question 3

Multiple Choice

Tech A says that bands are a type of hydraulic valve. Tech B says that servos are devices used to allow free movement in one direction and lock up in the other direction. Who is correct?

• A) Tech A
• B) Tech B
• C) Both A and B
• D) Neither A nor B

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Definitions:

Natural Hedge

A risk management technique where a business reduces its exposure to fluctuations, typically in currency or interest rates, through its normal operations.

Trade Accounts Receivables

Amounts owed to a business by its customers from the sale of goods or services on credit.

Danish Krones

The currency of Denmark, used as the primary means of exchange within the country.

Hedge Accounting

A method of accounting where entries for the ownership of a security and the opposing hedge are treated as one. It aims to reduce the volatility seen in financial statements.